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Districts Report Grim Outlook as Stimulus Fades

School districts across the country are warning of widespread layoffs and severe cutbacks in programs as funding under the federal economic-stimulus package begins to dry up, according to a report released Thursday by the American Association of School Administrators .

The infusion of up to $100 billion in education aid under the American Recovery and Reinvestment Act , which passed Congress last year, clearly helped districts avert personnel reductions, the report concludes. But many districts are facing a bleak fiscal picture as that aid starts to run out later this year, despite signs of improvement in the overall economy.

“The cessation of ARRA dollars, paired with the continued budget strains at the state and local levels, … represents a one-two punch to education funding that will further insulate schools from economic recovery,” the report says, “and will likely translate into more budget cuts, more job cuts, and fewer resources...